Meditorian Banking Statistics The Monetary Policy of Meditor Is Determined by the Meditorian

question 126

Multiple Choice

Meditorian Banking Statistics
The monetary policy of Meditor is determined by the Meditorian Central Bank. The local currency is the medit. Meditorian banks collectively hold 100 million medits of required reserves, 25 million medits of excess reserves, 250 million medits of Meditorian Treasury Bonds, and their customers hold 1,000 million medits of deposits. Meditorians prefer to use only demand deposits and so all currency is on deposit at the bank.
-Refer to Meditorian Central Banking.Assume that banks desire to continue holding the same ratio of excess reserves to deposits.What is the required reserve ratio and what is the reserve ratio?

• A)2%, 8%
• B)8%, 10%
• C)10%, 12.5%
• D)None of the above is correct.

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Definitions:

Medial Hypothalamus

An area of the brain, part of the hypothalamus, involved in the regulation of appetite, aggression, and certain aspects of emotion.

Lateral Hypothalamus

Part of the hypothalamus gland in the brain, believed to control hunger and thirst by regulating the body's perception of the need to eat or drink.

Pancreas

A glandular organ in the digestive and endocrine system of vertebrates, producing enzymes and hormones such as insulin to aid in digestion and blood sugar regulation.

Weight Gain

An increase in body weight. This can result from the accumulation of body fat, muscle mass, or fluid retention.